CapitaLand rallies after CEO says not growing AUM for AUM’s sake

“I must stress we do not want to grow AUM for AUM’s sake. We are not, out of the blue, going to go into new asset classes where we have no inherent abilities,” says Lee Chee Koon, group CEO of CapitaLand, and CEO-designate of CapitaLand Investment (CLI). That is likely to differentiate CLI from other real estate investment managers (REIMs) including homegrown ARA Asset Management.

At any rate, with $10 billion of property, and the ability to recycle these assets, to form partnerships with Capitaland Development, other capital partners to acquire and develop property, and with a renminbi fund management licence, CLI has a lot of optionality for growth. Following details of how CLI plans to enhance shareholder value through this thoughtful growth, and without collecting AUM needlessly, CapitaLand’s share price is at a new decade high ending above $4 on July 22.